H.C. Wainwright Reaffirms Their Buy Rating on Akebia Therapeutics (AKBA)

By Jason Carr

H.C. Wainwright analyst Ed Arce maintained a Buy rating on Akebia Therapeutics (AKBAResearch Report) on September 5 and set a price target of $17. The company’s shares closed last Monday at $4.07, close to its 52-week low of $3.50.

Arce noted:

“We continue to believe that positive outcomes, on both safety and efficacy, from all four studies is highly likely, and with data directly comparing its outcomes to the current standard of care in both DD and NDD patients, we continue to believe Akebia is well positioned for clinical, regulatory and commercial success. Affirm Buy. $17 PT. We employ a rNPV model, driven by U.S. sales of vadadustat (early 2022 launch, 75% POS, $2.5B peak U.S. sales) and Auryxia (peak sales of $409M in 2024) out to 2028 (zero terminal value) discounted at 12.5%. Risks to our investment thesis and target price include: (1) failure in pivotal Phase 3 vadadustat studies; (2) failure to secure regulatory approval of vadadustat; (3) a smaller than anticipated commercial opportunity due to market size, competition, and/or pricing; and (4) intellectual property opposition.”

According to TipRanks.com, Arce is a 4-star analyst with an average return of 8.0% and a 35.6% success rate. Arce covers the Healthcare sector, focusing on stocks such as Entasis Therapeutics Holdings Inc, Madrigal Pharmaceuticals Inc, and Arcturus Therapeutics Ltd.

Akebia Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $18.60.

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Based on Akebia Therapeutics’ latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $58.17 million. In comparison, last year the company had a GAAP net loss of $34.07 million.

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Akebia Therapeutics, Inc. is a biopharmaceutical company, which engages in the development and commercialization of therapeutics for patients with kidney disease. The firm also involves in the development and commercialization of drugs for the treatment of renal and metabolic disorders. Its products include Auryxia and Vadadustat.